Positioning itself as a destination of choice for crypto asset investors and in response to global demand from the industry, ADGM is the first jurisdiction in the world to introduce a comprehensive and bespoke regulatory framework for the regulation of spot crypto asset activities, including those undertaken by exchanges, brokers, custodians, asset managers and other intermediaries.
ADGM is a leading jurisdiction worldwide for the regulation of crypto asset activities. Its comprehensive framework facilitates the operation of industry leading crypto asset players in a business-friendly environment. The regulatory framework addresses the full range of associated risks, including those relating to market abuse and financial crime, consumer protection, technology governance, custody and exchange operations. Amongst the many truly unique aspects of ADGM's Crypto Asset framework, the provisions relating to market abuse and transaction reporting obligations apply.
This framework is one of ADGM's many efforts and part of its ongoing commitment to bolster the economic diversification of Abu Dhabi and the UAE through innovation and sustainable initiatives. This framework does not apply to Digital Securities, Offerings or for other capital raising purposes. For details on the regulatory treatment of Digital Securities, click here.
Crypto Asset Exchanges
The FSRA is the first regulator globally to truly regulate Crypto Asset Exchanges as ‘exchanges’, requiring them to operate similarly to traditional trading venues. Under the FSRA's regime, Crypto Asset Exchanges are treated similarly to ‘Multilateral Trading Facilities’ requiring them to meet requirements in relation to market surveillance, settlement, transaction recording, transparency and other systems and controls. In order to foster institutional involvement within crypto asset markets, the FSRA focuses on proper governance, oversight and transparency in relation to actors within this space.
Crypto Asset Intermediaries
Responsible crypto asset players are seeking a regulatory regime like ADGM's which upholds high standards and fosters market confidence. The spot crypto asset framework regulates crypto asset intermediaries, including custodians, brokers, asset managers and advisors, similar to their conventional counterparts with a particular focus on the risks relating to financial crime, consumer protection, technology governance and custody arrangements, where applicable.
To download Crypto Asset Activities Guidelines click here.
Financial services entities are required to meet specific resource requirements, either designated as Controlled Functions, which require approval by the FSRA, or as Recognised Functions, which are appointed by the entity itself and notified to the FSRA. For more information refer to Chapters 5.3 and 5.4 in the ADGM General Rulebook (GEN).
Entities that are either required or that want to have a physical presence, will find a wide range of Grade A office space on Al Maryah Island to choose from. The ADGM team will advise regarding office requirements on a case by case basis.
Abu Dhabi is ideal for Crypto Assets activities
Unique International Financial Centre offering
Abu Dhabi is a leading destination for Crypto asset activities given ADGM's comprehensive regulatory framework.
The ease of doing business in Abu Dhabi and within ADGM is invaluable, with numerous digital platforms, an environment that supports good business, and a concierge service for all Abu Dhabi government services.
Abu Dhabi supports a low cost establishment which helps to protect margins and costs.
Access to capital
There is a substantial institutional and retail investor base within Abu Dhabi, UAE and MENA with a strong presence of HNW individuals, family offices, corporates and sovereign wealth.
World class infrastructure with significant investments in green sustainable energy, Abu Dhabi has an extensive professional services infrastructure such as medical, consultancy, legal, architectural and housing.
Safe and stable
Ranked one the safest cities in the world, Abu Dhabi offers world-class infrastructure, including housing, schools, sporting facilities, cultural institutions and events with convenient international transportation links globally.
Why set up your Crypto Assets business in ADGM
Comprehensive Crypto regulatory framework
ADGM is the world's first jurisdiction to develop a comprehensive Crypto regulatory framework making it a leading global destination for Crypto asset activities.
Familiar regulatory standards
ADGM is the first jurisdiction globally to apply regulatory standards similar to those applicable to traditional markets.
Rule of law
A strong rule of law through the direct application of English common law, strong judiciary, speed of judgment facilitated by world's first e-Courts, seat of arbitration, and a strong system of enforceability of judgments providing legal certainty and comfort for transactions undertaken in its market.
ADGM is a tax friendly environment, with 0% corporate and income tax and access to the UAE's extensive double tax treaties.
ADGM prides itself on being a progressive regulator open to the use of new technologies and innovation.
If you have questions or need any assistance, we're here to help.
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